Mitsubishi HC Capital and Morgenrot Sign Capital and Business Alliance Agreement

Mitsubishi HC Capital Inc. and Morgenrot Inc. have concluded a capital and business alliance agreement.

Moving forward, the two companies will collaborate on creating mechanisms to facilitate GPU adoption for enterprises and providing low-environmental-impact computing resources integrated with Mitsubishi HC Capital's renewable energy business. This initiative aims to reduce the procurement and operational burdens associated with AI utilization, facilitating smoother AI and advanced data utilization for businesses.

1. Background of the Alliance In recent years, AI utilization has accelerated across various fields including manufacturing, finance, healthcare, entertainment, and retail. High-performance GPUs are essential for advanced computing tasks such as generative AI and machine learning. As AI models scale, challenges include price hikes and supply shortages due to soaring GPU demand, as well as operational loads related to increased power consumption and thermal management. Furthermore, constraints in power supply, such as insufficient grid capacity, present risks to operating deployed GPUs at full capacity. Consequently, AI servers requiring large quantities of GPUs necessitate capital investment, cooling enhancements, and electrical infrastructure upgrades, increasing the focus on environmental impact and sustainability.

Morgenrot is a startup with the mission of "realizing a world where you can access the computing power you need, when you need it," focusing on the visualization, management, and optimization of existing corporate computing resources and the provision of optimal environments through computing power sharing.

2. Details of the Alliance Under this alliance, the companies will integrate Morgenrot's technical expertise in AI data center construction and GPU virtualization/visualization with Mitsubishi HC Capital's broad customer base, stable financing capabilities, and expertise in renewable energy power generation to build and provide computing infrastructure.

Specifically, they will visualize and optimize GPU utilization for enterprises and research institutions, while building flexible models such as virtualized GPU server sharing and rental. This will lower the initial investment and operational burden for GPU adoption. Moreover, by leveraging Mitsubishi HC Capital's renewable energy business, they aim to provide sustainable computing resources with reduced environmental impact.

Furthermore, the companies will explore support for in-house AI data centers, the construction of dedicated environments, cloud GPU business models, and the feasibility of secondary GPU markets.

This partnership is supported by Mitsubishi HC Capital's "Innovation Investment Fund."